EUR/USD: Euro remains close to 1.0500 level, but further rise remains a challenge

The European currency remains close to the 1,05 level, maintaining the pattern of recent days, trying to create the prospects for higher prices, which remains a significant challenge.

The Euro found temporary support from yesterday's announcement on consumer confidence in the United States, which for the third consecutive month showed a decline, something that is beginning to create concern about the growth path of the American economy, as consumption remains the main pillar of growth.

Otherwise, the general market picture shows no differences, with the main catalysts that have been influencing the course of the exchange rate in recent time  remaining high on the agenda.

The significant developments on the Ukrainian front seem to temporarily support the European currency as any positive development and the end of the war is certainly a significant relief for the Old Continent.

However, although there are strong signs of optimism as the negotiation cycle has begun, developments may be delayed.

Central banks decisions regarding the level of key interest rates remain at the top of investors' agendas, with the interest rate gap remaining in favor of the US currency and the likelihood of this gap widening in the coming months remaining high.

The above is currently perhaps the most important obstacle in the European currency's attempt to re-approach levels close to 1.07 - 1.08.

On today's agenda stands out the speech of President Donald Trump, who now everyone recognizes that he has no intention of remaining ''boring'' during his term.

His enigmatic personality with frequent changes in decisions and directions is expected to increase volatility in the markets with the risks of ''accidents''  remaining high.

No changes in my thoughts, as we are quite far from the recent lows we are probably not at the right levels to consider buying the European currency on a dip and I would prefer a further peak near the 1,07 level for the possibility of buying the US dollar.